Airwork’s receivers file second report

By Andrew Curran.

The receivers overseeing the Airwork insolvency have released their second report detailing the “state of affairs” at the beleaguered New Zealand freight airline over the second half of 2025.

Airwork Holdings Limited and four subsidiary New Zealand registered companies were placed in receivership on July 2, 2025. Airwork Ireland Limited, an Irish-based subsidiary of Airwork Holdings Limited also went into receivership in September.

Three Australian-registered connected companies are not in receivership.

The receivers, Neale Jackson and Brendon Gibson from Calibre Partners, note that Airwork has continued to operate while they’ve hunted for a buyer for its New Zealand and Australian assets.

They say they hope to find a buyer later this year.

Stranded freighters help sink Airwork

Airwork operates a fleet of nine B737 converted freighters, including eight B737-400s and one B737-800. Four of those planes, including the -800, are parked or undergoing maintenance.

Of the remaining five active aircraft, Airwork operates two on behalf of Parcelair.

Airwork Flight Operations, one of the Airwork Holdings Limited companies also in receivership, is the group’s New Zealand certified air operator. There is no Australian issued AOC but air services agreements enable Airwork to operate to and within Australia.

Airwork is majority-owned by China’s Zhejiang Rifa Precision Machinery. It has faced financial difficulties ever since five freighters were stranded in Russia following that country’s invasion of Ukraine.

This caused a substantial revenue losses and significant asset impairments. Airwork is pursuing an insurance claim, but the matter remains unsettled.

Banks move after another default loomed

In mid-2024, Airwork defaulted on a NZD140.4 million (USD83.5 million) loan. It later negotiated a one-year extension, hoping to sell enough assets in the time to cover the debt.

By mid-2025, it was becoming clear this wouldn’t happen, and the Bank of New Zealand led banking consortium pulled the plug on the company, saying Airwork had breached its banking facilities.

While this was playing out, some Airwork customers were getting twitchy about the company’s future and many their business elsewhere.

This was made easier by new local competitors such as Texel Air Australasia, SmartLynx Australia, and ASL Australia entering the market, giving Airwork’s customers more choice.

Airwork's debt to secured creditors increases

The first receiver’s report, issued in September 2025, revealed that Airwork owed secured creditors NZD145 million (USD86.2 million). This week's report says that has increased to NZD153.6 million (USD91.4 million).

“During the reporting period, the receivers have continued to trade the business as usual while concurrently undertaking a sale process for the Airwork Group’s freight business and assets in New Zealand and Australia,” this week’s report reads.

“The receivers are also overseeing a sale process for assets that the Group is not using in its freight business. The surplus assets primarily comprise of airframes, engines, and rotable parts.”

“At the date of this report, the sale process is ongoing,” the report says. “We expect the sale process to conclude in the next reporting period.

Between July 2 and December 31, 2025, the statement of receipts and payments included with this week’s report show that Airwork Holdings generated revenues of NZD49.3 million (USD29.3 million) over the period.

This included the receivers realising NZD3.6 million (USD2.1 million) of aircraft related surplus assets. The receivers say it take some time to sell the remaining surplus asset inventory.

Receivers get their cut

Outgoings totalled almost NZD37 million (USD22 million) over the same period, including the nearly NZD2.5 million (USD1.5 million) collected by Calibre Partners.

Secured lenders received almost NZD3.74 million (USD2.2 million) following assets sales late last year, while the receivers paid out NZD0.9 million (USD540,000) in employee preferential claims.

“We are currently assessing unsecured creditor claims,” the report adds. “It is still too early to confirm if there will be surplus funds available to distribute to unsecured creditors.

The receivers are also awaiting New Zealand’s tax office to finalise its preferential claim.

Jackson and Gibson also say it is still too early to determine what the final outcome of the receivership’s will be.

You can read the receivers report, including their payments and receipts report, here.

Photo: AI-Generated.

Contact the writer: andrew@aerosouthpacific.com